Encompass Health Q2 revenue rises, adjusted EPS beats estimates

Encompass Health

05/08/2026 21:41

Overview
U.S. rehab hospital operator's Q2 revenue rose 9.6% yr/yr
Adjusted EPS for Q2 beat analyst expectations
Company raised full-year guidance and expanded stock buyback authorization to $1 bln

Outlook
Company raises 2026 net operating revenue guidance to $6.41 bln-$6.49 bln
Encompass Health now sees 2026 adjusted EBITDA of $1.365 bln-$1.395 bln
Company expects 2026 adjusted EPS from continuing operations of $6.02-$6.25

Result Drivers
PATIENT VOLUME - Co said Q2 growth was supported by a 5.6% increase in discharges and 2.8% same-store discharge growth
REVENUE PER DISCHARGE - Net patient revenue per discharge rose 3.9% yr/yr, contributing to overall revenue growth
HOSPITAL EXPANSION - Opened three hospitals totaling 139 beds and added 54 beds to existing hospitals in H1, with further expansion planned

Company press release: ID:nPn2Yw4Hga

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Operating Revenue
 
$1.6 bln
 
Q2 Adjusted EPS
Beat
$1.55
$1.48 (13 Analysts)

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the healthcare facilities & services peer group is "buy"
Wall Street's median 12-month price target for Encompass Health Corp is $140.00, about 26.7% above its August 4 closing price of $110.50
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 16 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)